Ikea plans move in to budget design hotel market

Sweden: Homeware and furnishings giant Ikea has announced plans for a chain of budget design hotels across Europe.

It is planning around 100 hotels in Britain, Belgium, Austria, Germany, Holland and Poland, with Germany expected to see the first opening.

Although Ikea will develop and own the properties, it will partner with an operator or management company to run, them, and the properties won’t be Ikea branded.

Harald Muller, senior executive in the property division of parent company Inter Ikea, said: “It is not an Ikea hotel. It’s a continuation of our normal investment activities in real estate.”

“Budget designer hotels is today the fastest developing hotel segment,” he added.

The new chain will be competing with the likes of Base@Stay in London, Citizen M in London, Amsterdam and Glasgow; and the Chic & Basic chain in Barcelona and Madrid.
 
inter.ikea.com

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